Understanding China, One Blog at a Time

An American in China

Archive for September 20th, 2014

Knockoff Iphone 6 Shipping in China

Posted by w_thames_the_d on September 20, 2014

The Chinese can only innovate new ways to screw civilized countries.


Pic from awrence_uber_alles/Reddit

Never ones to let things like pesky Intellectual Property Rights (IPR) get in the way of making a buck, some Chinese are selling the Iphone 6, sort of. A Chinese company is shipping knockoffs of the newest Iphone before Cupertino does.

“China has a history of Shanzhai which at once means clever copying,

and flagrant IP theft.

In reality, the Chines see the two forms of piracy in a different light. The former takes no skill and is tantamount to theft while the latter gets to the heart of the Shanzhai or ‘mountain bandit’ culture. This resonates with the one-child cohort which tends to favor nationalist ideals. Their scholastic text books taught them that foreigners had rendered China to the sick man of Asia status for 100 years. Chinese TV does anything but dispel such notions. The impact is that this group seeks to help construct or reconstruct a stronger China while embracing global goods as well.

This demographic is ready to embrace a local brand with global cache, something China lacks. The knockoff Iphone 6 will be a hit, but in the minds of most a cheesy attempt at looking richer or better connected than one is.” Link

Paradoxically, when companies such as Xiaomi knockoff Apple, they are lauded. The reason once again lies in how Shanzhai is viewed. Lei Jun, Xiaomi’s leader, practically has cult idol status. His brazen approach at all things marketing appeals with the one-child demographic. He also represents their best near term chance of creating a positively viewed homegrown Chinese brand.

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How Alibaba’s Jack Ma Stole Billions from Yahoo

Posted by w_thames_the_d on September 20, 2014

Jim Chanos called Alibaba’s Jack. Ma a thief, and here is why…

Jack Ma: Alibaba and Its Conniving Thief

Cover Story

On the last day of March this year, AlibabaGroup’s C.E.O. Jack Ma casually informed Yahoo and Softbank-the majority (over 70%) owners of Alibaba Group- that he had transferred ownership of Alibaba’s payment company, Alipay to a private company owned by himself and a friend.

Yahoo was stunned.

Alipay is the Chinese equivalent of PayPal, only it is more than twenty times larger. It is the largest third- party payment center in China, with over 550 million registered users in China and partners with more than 65 financial institutions such as Visa and MasterCard.

Greenlight capital, which made a substantial investment in Yahoo shares in May 2011, stated that Yahoo’s stake in Alipay could be ultimately worth more than Yahoo’s current (in May) market value of 25 billion dollars.

The transfer was ostensibly done at the behest of the Chinese Government which implied that it frowned upon foreign ownership of Chinese financial institutions. However, the manner in which Jack Ma transferred the ownership of Alipay looks to me like outright theft.

According to Yahoo, any transaction of 10 million dollars by Alibaba has to be approved by its corporate board.

This was not done.

Instead, Jack Ma states that the subject of Chinese ownership of Alipay was brought up in an earlier meeting sometime in 2009.

Both Yahoo and Softbank deny that any permission was given for Mr. Ma to transfer Alipay’s ownership to any entity, let alone himself.

The manner in which Mr. Ma did the transfer is also telling. He did it without any notification to Alibaba’s board and incorporated Alipay in the Cayman Islands.

Why the Cayman Islands?

The Cayman Islands are the epicenter of fraudulently acquired funds. Its banking secrecy laws are stricter than that of the Swiss and as far as corporate fraud locations: it is the place to park any ill-gotten gains. Remember Bre-X? The Cayman Islands is where assets of the gold stock fraud were stored and never recovered for its victims.

Jack Ma states it was the transfer was done in a “lawful” and “transparent” manner. But why did Mr. Ma wait for the better part of a year before he informed Yahoo and Softbank that they no longer had any stake in Alipay?

Jack Ma may insist he is not a thief. After all, he paid Alibaba a whopping 300 million yuan for Alipay.

Sounds like a lot doesn’t it?

300 million yuan does sound like a lot of cash- that is until you do the math and convert it into American dollars: 46 million dollars.

What a steal.


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Value of a Woman in China, One Iphone 6, Just ask This Guy

Posted by w_thames_the_d on September 20, 2014

Chinese will sell anything. A life, a kidney, their girlfriend. To them the value of anything created is little else than an object for them to destroy and use as they see fit. Here is a prime example.


With a fan base like this, who need advertisements? The Chinese carve Apple logos onto their kids skulls, families sell vital organs and their first borne for a phone and now they sell their lover.

Yeah, some guy in China is trading his girlfriend, ie pimping her out by the hour, day and month in order to buy an Iphone 6. This speaks to the incredible allure of Iphones in China. They will do anything to get their hands on one. Xiaomi, howver, is not so lucky.

I can see trading a Big Mac for my Xiaomi phone, but my girlfriend?



Excerpt 2
This pretty much sums up china. A guy is pimping out/renting his girlfriend in order to pay for an Iphone 6. You can buy her for one hour, one day and or one month.

Her pimp/ lover says you can only talk to her, but no funny business, but then he posts a pics like this, so you decide what his and her intentions are.

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